dotDigital sales climb in second half of 2012

dotDigital Group, a software and digital marketing company, reported on Friday a 22 per cent sales increase during the last half of 2012 as new clients including BBC Worldwide and Balfour Beatty jumped on board.

dotDigital Group, a software and digital marketing company, reported on Friday a 22 per cent sales increase during the last half of 2012 as new clients including BBC Worldwide and Balfour Beatty jumped on board.

Email marketing, e-commerce and website building services were the top performers, the group said in a trading update for the six months leading to the end of December.

A 38% increase to £4.1m in email marketing, including Saas licence and usage, was driven by new clients in the corporate sector and demand from existing customers.

Clients who joined the company over the period were BBC Worldwide, e-Consultancy, Harveys, England Hockey Board, Investec, Osprey London, BP International, ITV, Odeon Cinemas, Ryman, Delice de France, Surrey County Council, City & Guilds, Cartridge World, Balfour Beatty and Help for Heroes.

The newly opened New York office also helped boost revenues as it signed its first email marketing client just before the Christmas holiday.

The company now plans to open an office in Melbourne, Australia.

While the sales were up overall, the company experienced a decline in services of search engine optimisation (SEO), pay per click and managed campaigns.

"Despite our efforts to reposition the search marketing business to mitigate the impact of the changes made by Google to their search engine algorithms in 2012, it has become clear in recent months that the original strategy of cross-selling SEO to the small and medium enterprises clients of dotMailer is now less attractive and less profitable because of reduced operating margins and is increasingly seen as a distraction to the core strategy of growing email marketing revenues," the company said in a statement.

However, that company said it has continued to see recurring revenues and is predicts growth this year.

The full results will be announced in February. Shares fell 6.72% to 15.62 at 9:50 Friday.

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
House prices: from boom to even bigger boom
House prices

House prices: from boom to even bigger boom

UK house prices have risen to new to record highs, says Nicole Garcia Merida. Demand continues to outpace supply, but continued low interest rates, th…
9 Apr 2021
Nuclear power might never be popular – but now looks a good time to invest
Commodities

Nuclear power might never be popular – but now looks a good time to invest

Nuclear power gets a very bad press, but it is the ultimate renewable energy source. Interest in it is perking up again, says John Stepek. Which means…
9 Apr 2021